Document and Entitiy Informatio
Document and Entitiy Information - shares | 6 Months Ended | |
Jun. 30, 2023 | Jul. 24, 2023 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 1-12936 | |
Entity Registrant Name | TITAN INTERNATIONAL, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 36-3228472 | |
Entity Address, Address Line One | 1525 Kautz Road, Suite 600 | |
Entity Address, City or Town | West Chicago | |
Entity Address, State or Province | IL | |
Entity Address, Postal Zip Code | 60185 | |
City Area Code | 630 | |
Local Phone Number | 377-0486 | |
Title of 12(b) Security | Common stock, $0.0001 par value | |
Trading Symbol | TWI | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0000899751 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 62,727,033 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Revenue from Contract with Customer, Excluding Assessed Tax | $ 481,176 | $ 572,895 | $ 1,029,820 | $ 1,128,892 |
Cost of sales | 395,281 | 463,242 | 848,368 | 932,510 |
Gross profit | 85,895 | 109,653 | 181,452 | 196,382 |
Selling, general and administrative expenses | 34,858 | 34,669 | 69,330 | 70,896 |
Research and development expenses | 3,218 | 2,238 | 6,232 | 5,158 |
Royalty expense | 1,921 | 3,045 | 4,856 | 5,919 |
Income (loss) from operations | 45,898 | 69,701 | 101,034 | 114,409 |
Interest expense, net | (5,762) | (7,707) | (12,254) | (15,614) |
Foreign exchange gain (loss) | 2 | 2,234 | (1,758) | 7,551 |
Other income | 1,186 | 23,694 | 1,948 | 14,835 |
Income before income taxes | 41,324 | 87,922 | 88,970 | 121,181 |
Provision for income taxes | 9,429 | 19,001 | 23,645 | 27,682 |
Net income | 31,895 | 68,921 | 65,325 | 93,499 |
Net income attributable to noncontrolling interests | 1,688 | 1,750 | 3,280 | 2,406 |
Net income attributable to Titan and applicable to common shareholders | $ 30,207 | $ 67,171 | $ 62,045 | $ 91,093 |
Earnings per common share: | ||||
Basic | $ 0.48 | $ 1.07 | $ 0.99 | $ 1.44 |
Diluted | $ 0.48 | $ 1.06 | $ 0.98 | $ 1.43 |
Average common shares and equivalents outstanding: | ||||
Basic | 62,931 | 62,671 | 62,918 | 63,262 |
Diluted | 63,234 | 63,221 | 63,404 | 63,773 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Net income | $ 31,895 | $ 68,921 | $ 65,325 | $ 93,499 |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification and Tax | (39) | 275 | (150) | 578 |
Currency translation adjustment | (645) | (11,536) | 6,299 | 5,739 |
Pension liability adjustments, net of tax of $(30) and $(344), respectively | 123 | 431 | 93 | 975 |
Comprehensive income (loss) | 31,334 | 58,091 | 71,567 | 100,791 |
Net comprehensive (loss) income attributable to redeemable and noncontrolling interests | (1,169) | 8,979 | (672) | 8,453 |
Comprehensive income (loss) attributable to Titan | $ 32,503 | $ 49,112 | $ 72,239 | $ 92,338 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, Tax | $ (41) | $ (162) | $ (30) | $ (344) |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Current assets | ||
Cash and cash equivalents | $ 196,452 | $ 159,577 |
Accounts receivable, net | 280,688 | 266,758 |
Inventories | 378,258 | 397,223 |
Prepaid and other current assets | 78,856 | 86,070 |
Total current assets | 934,254 | 909,628 |
Property, plant and equipment, net | 307,612 | 296,605 |
Operating Lease, Right-of-Use Asset | 6,999 | 8,932 |
Deferred income taxes | 26,689 | 38,736 |
Other long-term assets | 29,597 | 30,729 |
Total assets | 1,305,151 | 1,284,630 |
Current liabilities | ||
Short-term debt | 18,536 | 30,857 |
Accounts payable | 231,884 | 263,376 |
Other current liabilities | 152,826 | 151,928 |
Total current liabilities | 403,246 | 446,161 |
Long-term debt | 411,671 | 414,761 |
Deferred income taxes | 3,312 | 3,425 |
Other long-term liabilities | 35,962 | 37,145 |
Total liabilities | $ 854,191 | $ 901,492 |
Common Stock, par value | $ 0.0001 | |
Common Stock, shares authorized (in shares) | 120,000,000 | |
Common Stock, shares issued (in shares) | 66,525,269 | 66,525,269 |
Treasury Stock, Common, Shares | 3,837,049 | 3,681,308 |
Titan stockholders' equity | ||
Common stock ($0.0001 par value, 120,000,000 shares authorized, 66,525,269 issued at June 30, 2023 and 66,525,269 at December 31, 2022) | $ 0 | $ 0 |
Additional paid-in capital | 565,734 | 565,546 |
Retained earnings | 152,908 | 90,863 |
Treasury stock (at cost, 3,837,049 shares at June 30, 2023 and 3,681,308 shares at December 31, 2022) | (26,983) | (23,418) |
Accumulated other comprehensive loss | (241,561) | (251,755) |
Total Titan shareholders’ equity | 450,098 | 381,236 |
Noncontrolling interests | 862 | 1,902 |
Total equity | 450,960 | 383,138 |
Total liabilities and equity | $ 1,305,151 | $ 1,284,630 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - shares | Jun. 30, 2023 | Mar. 31, 2023 |
Liabilities and Equity [Abstract] | ||
Common Stock, shares, outstanding (in shares) | 62,688,220 | 63,085,062 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional paid-in capital [Member] | Retained earnings [Member] | Accumulated other comprehensive income (loss) [Member] | Parent [Member] | Noncontrolling interest [Member] | Treasury Stock, Common |
Balance, Beginning (in shares) at Dec. 31, 2021 | 66,411,784 | |||||||
Balance, Beginning at Dec. 31, 2021 | $ (227,172) | $ (562,340) | $ 85,439 | $ 246,480 | $ (229,300) | $ 2,128 | $ 1,121 | |
Net income | 23,922 | 23,922 | ||||||
Net Income (Loss) Attributable to Nonredeemable Noncontrolling Interest | 656 | |||||||
Net Income (Loss), Including Portion Attributable to Nonredeemable Noncontrolling Interest | 24,578 | |||||||
Currency translation adjustment, net | 18,457 | (18,457) | (1,182) | |||||
Temporary Equity, Foreign Currency Translation Adjustments | (17,275) | |||||||
Pension liability adjustments, net of tax | 544 | (544) | (544) | |||||
Derivative, Gain on Derivative | 303 | 303 | 303 | |||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 212,440 | |||||||
Stock-based compensation | 488 | (851) | 488 | 1,339 | ||||
Issuance of treasury stock under 401(k) plan | 32,609 | |||||||
Issuance of treasury stock under 401(k) plan | 360 | 360 | 360 | |||||
Stock Repurchased During Period, Shares | (4,032,259) | |||||||
Treasury Stock, Value, Acquired, Cost Method | 25,000 | 25,000 | 25,000 | |||||
Balance, Ending (in shares) at Mar. 31, 2022 | 62,624,574 | |||||||
Balance, Ending at Mar. 31, 2022 | (245,720) | (561,849) | 61,517 | 227,176 | (248,374) | 2,654 | 24,782 | |
Balance, Beginning (in shares) at Dec. 31, 2021 | 66,411,784 | |||||||
Balance, Beginning at Dec. 31, 2021 | (227,172) | (562,340) | 85,439 | 246,480 | (229,300) | 2,128 | 1,121 | |
Net income | 93,499 | |||||||
Currency translation adjustment, net | 5,739 | |||||||
Pension liability adjustments, net of tax | 975 | |||||||
Balance, Ending (in shares) at Jun. 30, 2022 | 62,774,777 | |||||||
Balance, Ending at Jun. 30, 2022 | (305,670) | (562,774) | (5,654) | 245,235 | (299,345) | (6,325) | 23,848 | |
Balance, Beginning (in shares) at Mar. 31, 2022 | 62,624,574 | |||||||
Balance, Beginning at Mar. 31, 2022 | (245,720) | (561,849) | 61,517 | 227,176 | (248,374) | 2,654 | 24,782 | |
Net income | 68,921 | 67,171 | 67,171 | |||||
Net Income (Loss) Attributable to Nonredeemable Noncontrolling Interest | 1,750 | |||||||
Net Income (Loss), Including Portion Attributable to Nonredeemable Noncontrolling Interest | 68,921 | |||||||
Currency translation adjustment, net | (11,536) | (18,765) | (18,765) | 7,229 | ||||
Temporary Equity, Foreign Currency Translation Adjustments | (11,536) | |||||||
Pension liability adjustments, net of tax | 431 | (431) | (431) | |||||
Derivative, Gain on Derivative | 275 | 275 | 275 | |||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 122,351 | |||||||
Stock-based compensation | 1,456 | 695 | 1,456 | 761 | ||||
Issuance of treasury stock under 401(k) plan | 27,852 | |||||||
Issuance of treasury stock under 401(k) plan | 403 | 230 | 403 | 173 | ||||
Balance, Ending (in shares) at Jun. 30, 2022 | 62,774,777 | |||||||
Balance, Ending at Jun. 30, 2022 | (305,670) | (562,774) | (5,654) | 245,235 | (299,345) | (6,325) | 23,848 | |
Balance, Beginning (in shares) at Dec. 31, 2022 | 62,843,961 | |||||||
Balance, Beginning at Dec. 31, 2022 | (383,138) | (565,546) | (90,863) | 251,755 | (381,236) | (1,902) | 23,418 | |
Net income | 31,838 | 31,838 | ||||||
Net Income (Loss) Attributable to Nonredeemable Noncontrolling Interest | 1,592 | |||||||
Net Income (Loss), Including Portion Attributable to Nonredeemable Noncontrolling Interest | 33,430 | |||||||
Currency translation adjustment, net | 8,039 | 8,039 | (1,095) | |||||
Temporary Equity, Foreign Currency Translation Adjustments | 6,944 | |||||||
Pension liability adjustments, net of tax | (30) | 30 | 30 | |||||
Derivative, Loss on Derivative | (111) | 111 | 111 | |||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 322,157 | |||||||
Stock-based compensation | 700 | (1,303) | 700 | 2,003 | ||||
Issuance of treasury stock under 401(k) plan | 28,733 | |||||||
Issuance of treasury stock under 401(k) plan | 429 | 250 | 429 | 179 | ||||
Stock Repurchased During Period, Shares | (109,789) | |||||||
Treasury Stock, Value, Acquired, Cost Method | $ 1,293 | 1,293 | 1,293 | |||||
Balance, Ending (in shares) at Mar. 31, 2023 | 63,085,062 | |||||||
Balance, Ending at Mar. 31, 2023 | $ (423,207) | (564,493) | (122,701) | 243,857 | (420,808) | (2,399) | 22,529 | |
Balance, Beginning (in shares) at Dec. 31, 2022 | 62,843,961 | |||||||
Balance, Beginning at Dec. 31, 2022 | (383,138) | (565,546) | (90,863) | 251,755 | (381,236) | (1,902) | 23,418 | |
Net income | 65,325 | |||||||
Currency translation adjustment, net | 6,299 | |||||||
Pension liability adjustments, net of tax | $ 93 | |||||||
Stock Repurchased During Period, Shares | (603,068) | |||||||
Treasury Stock, Value, Acquired, Cost Method | $ 6,400 | |||||||
Balance, Ending (in shares) at Jun. 30, 2023 | 62,688,220 | |||||||
Balance, Ending at Jun. 30, 2023 | $ (450,960) | (565,734) | (152,908) | 241,561 | (450,098) | (862) | 26,983 | |
Balance, Beginning (in shares) at Mar. 31, 2023 | 63,085,062 | |||||||
Balance, Beginning at Mar. 31, 2023 | $ (423,207) | (564,493) | (122,701) | 243,857 | (420,808) | (2,399) | 22,529 | |
Net income | 31,895 | 30,207 | 30,207 | |||||
Net Income (Loss) Attributable to Nonredeemable Noncontrolling Interest | 1,688 | |||||||
Net Income (Loss), Including Portion Attributable to Nonredeemable Noncontrolling Interest | 31,895 | |||||||
Currency translation adjustment, net | (645) | 2,212 | 2,212 | (2,857) | ||||
Temporary Equity, Foreign Currency Translation Adjustments | (645) | |||||||
Pension liability adjustments, net of tax | 123 | (123) | (123) | |||||
Derivative, Loss on Derivative | (39) | (39) | (39) | |||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 54,084 | |||||||
Stock-based compensation | 1,515 | 1,143 | 1,515 | 372 | ||||
Issuance of treasury stock under 401(k) plan | 42,353 | |||||||
Issuance of treasury stock under 401(k) plan | $ 449 | 178 | 449 | 271 | ||||
Stock Repurchased During Period, Shares | (493,279) | (493,279) | ||||||
Treasury Stock, Value, Acquired, Cost Method | $ 5,097 | (5,097) | (5,097) | |||||
Noncontrolling Interest, Period Increase (Decrease) | $ (448) | (80) | (80) | (368) | ||||
Balance, Ending (in shares) at Jun. 30, 2023 | 62,688,220 | |||||||
Balance, Ending at Jun. 30, 2023 | $ (450,960) | $ (565,734) | $ (152,908) | $ 241,561 | $ (450,098) | $ (862) | $ 26,983 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Cash flows from operating activities: | ||
Net income | $ 65,325 | $ 93,499 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 21,565 | 22,245 |
Gain (Loss) on Disposition of Business | 0 | 10,890 |
Deferred income tax provision | 12,349 | (292) |
Deferred Income Taxes and Tax Credits | (3,096) | (22,450) |
Unrealized Gain (Loss) on Investments | (71) | (182) |
Stock-based compensation | 2,215 | 1,944 |
Issuance of stock under 401(k) plan | 878 | 763 |
Foreign currency gain | (2,130) | (4,314) |
(Increase) decrease in assets: | ||
Accounts receivable | (16,322) | (49,527) |
Inventories | 24,096 | (38,884) |
Prepaid and other current assets | 12,512 | (1,817) |
Other assets | 1,285 | (5,044) |
Increase (decrease) in liabilities: | ||
Accounts payable | (32,005) | 7,480 |
Other current liabilities | 781 | 32,162 |
Other liabilities | 1,508 | 2,445 |
Net cash provided by operating activities | 88,890 | 48,918 |
Cash flows from investing activities: | ||
Capital expenditures | (27,567) | (19,464) |
Payments for (Proceeds from) Investments | 0 | 9,293 |
Proceeds from Sales of Assets, Investing Activities | 289 | 297 |
Net cash used for investing activities | (27,278) | (9,874) |
Cash flows from financing activities: | ||
Proceeds from borrowings | 4,373 | 89,015 |
Payments for Repurchase of Common Stock | (6,390) | (25,000) |
Payment on debt | (21,030) | (86,004) |
Proceeds from (Payments for) Other Financing Activities | (2,748) | (628) |
Net cash used for financing activities | (25,795) | (22,617) |
Effect of Exchange Rate on Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents, Continuing Operations | 1,058 | 2,168 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | 36,875 | 18,595 |
Supplemental information: | ||
Interest paid | 15,485 | 16,027 |
Income taxes paid, net of refunds received | 12,684 | 8,813 |
Cash and cash equivalents | $ 196,452 | $ 116,703 |
ACCOUNTING POLICIES
ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
ACCOUNTING POLICIES | BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES Basis of presentation The accompanying unaudited condensed consolidated interim financial statements include the accounts of Titan International, Inc. and its subsidiaries (Titan or the Company) and have been prepared in accordance with accounting principles generally accepted in the United States of America (US GAAP) for interim financial information and in accordance with the rules and regulations of the United States Securities and Exchange Commission (the SEC). Accordingly, they do not include all of the information and footnotes required by US GAAP for complete financial statements. The accompanying unaudited condensed consolidated interim financial statements reflect all normal and recurring adjustments that are, in the opinion of management, necessary for a fair presentation of the Company's financial position and the results of operations and cash flows for the periods presented, and should be read in conjunction with the consolidated financial statements and the related notes thereto included in the Company’s latest Annual Report on Form 10-K for the year ended December 31, 2022, filed with the SEC on February 27, 2023 (the 2022 Form 10-K). All significant intercompany transactions have been eliminated in consolidation. These unaudited condensed consolidated interim financial statements include estimates and assumptions of management that affect the amounts reported in the condensed consolidated financial statements. Actual results could differ from these estimates. Fair value of financial instruments The Company records all financial instruments, including cash and cash equivalents, accounts receivable, notes receivable, accounts payable, other accruals, and notes payable at cost, which approximates fair value due to their short term or stated rates. Investments in marketable equity securities are recorded at fair value. Our 7.00% senior secured notes due 2028 were carried at a cost of $395.8 million at June 30, 2023. The fair value of the senior secured notes due 2028 at June 30, 2023, as obtained through an independent pricing source, was approximately $373.0 million. Russia-Ukraine military conflict In February 2022, in response to the military conflict between Russia and Ukraine, the United States, other North Atlantic Treaty Organization member states, as well as non-member states, announced targeted economic sanctions on Russia, certain Russian citizens and enterprises. The continuation of the conflict triggered additional economic and other sanctions enacted by the United States and other countries throughout the world. The scope of potential additional sanctions is unknown. The Company currently owns 64.3% of the Voltyre-Prom, a leading producer of agricultural and industrial tires in Volgograd, Russia, which represents approximately 6% and 7% of consolidated assets of Titan as of June 30, 2023 and December 31, 2022, respectively. The Russian operations represent approximately 7% and 6% of consolidated global sales for the three months ended June 30, 2023 and 2022, respectively, while representing 6% of consolidated global sales for both the six months ended June 30, 2023 and 2022, respectively. The impact of the military conflict between Russia and Ukraine has not had a significant impact on global operations. The Company continues to monitor the potential impacts on the business including the increased cost of energy in Europe and the ancillary impacts that the military conflict could have on other global operations. Sale of Australian wheel business On March 29, 2022, the Company entered into a definitive agreement (the Agreement) for the sale of its Australian wheel business, to OTR Tyres, a leading Australian tire, wheel and service provider. The closing date of the transaction was March 31, 2022. The Agreement contains customary representations, warranties and covenants for transactions of this type. The sale included gross proceeds and cash repatriated of approximately $17.5 million, and the assumption by OTR Tyres of all liabilities, including employee and lease obligations. Refer to Note 12 for additional information on the loss on sale of the Australian wheel business. Share Repurchase Program On December 16, 2022, the Board of Directors authorized a share repurchase program allowing for the expenditure of up to $50.0 million (the “Share Repurchase Program”) for the repurchase of the Company's common stock. This authorization took effect immediately and will remain in place for up to three years. Under the Share Repurchase Program Titan repurchased 493,279 shares of its common stock totaling $5.1 million during the three months ended June 30, 2023, and 603,068 shares of its common stock totaling $6.4 million during the six months ended June 30, 2023. As of June 30, 2023, $43.6 million remains available for future share repurchases under this program. Supplier financing program A subsidiary of Titan participates in supplier financing programs pursuant to credit agreements between certain suppliers and financial institution. The program enables those suppliers to receive payment from participating financial institutions prior to the payment date specified in the terms between Titan and the supplier. Titan does not incur annual service fees associated with its enrollment in the supplier financing program. The transactions are at the sole discretion of both the suppliers and the financial institution, and Titan is not a party to the agreement and has no economic interest in the supplier's decision to receive payment prior to the payment date. The terms between Titan and a supplier, including the amount due and scheduled payment dates, are not impacted by a supplier's participation in the program. Amounts due to suppliers who participate in the program are included in the accounts payable line item in Titan's Consolidated Balance Sheets and Titan’s payments made under the program are reflected in cash flows from operating activities in Titan's Consolidated Statements of Cash Flows. For suppliers who participate in a supplier financing program, Titan will pay the financial institution directly rather than the supplier. The confirmed obligations under the supplier financing programs included in the accounts payable line item in Titan's Consolidated Balance Sheet were $6.7 million at June 30, 2023, and $11.8 million at December 31, 2022. Adoption of new accounting standards In September 2022, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2022-04, Liabilities—Supplier Finance Programs (Subtopic 405-50) Disclosure of Supplier Finance Program Obligations ("ASU No. 2022-04"). The ASU requires that a buyer in a supplier finance program disclose sufficient information about the program to allow a user of financial statements to understand the program’s nature, activity during the period, and potential magnitude. The amendments in this ASU will be applied retrospectively to each period in which a balance sheet is presented, with the exception of a new requirement to disclose a rollforward of program activity, which will be applied prospectively. The amendments in the ASU are effective for fiscal years beginning after December 15, 2022, with early adoption permitted. The Company adopted the impact of this ASU effective March 31, 2023 and incorporated the required disclosures within Note 1 to condensed consolidated financial statements. Accounting standards issued but not yet adopted On May 3, 2023, the SEC amended disclosure rules to modernize the disclosure requirements relating to repurchase of an issuer's equity securities. Under the amended rules, issuers will be required to provide daily repurchase activity on a quarterly or semi-annual basis, depending upon the type of issuer. Issuers will also have to explain the purpose of such repurchases and how they determined buyback amounts. The Company will adopt the impact of this standard on October 1, 2023 and will include the related enhanced disclosures in the Company's Form 10-K for the year ended December 31, 2023 and in the Company's quarterly reports thereafter. |
ACCOUNTS RECEIVABLE
ACCOUNTS RECEIVABLE | 6 Months Ended |
Jun. 30, 2023 | |
Receivables [Abstract] | |
ACCOUNTS RECEIVABLE | ACCOUNTS RECEIVABLE, NET Accounts receivable consisted of the following (amounts in thousands): June 30, December 31, Accounts receivable $ 286,012 $ 272,928 Allowance for credit losses (5,324) (6,170) Accounts receivable, net $ 280,688 $ 266,758 |
INVENTORIES
INVENTORIES | 6 Months Ended |
Jun. 30, 2023 | |
Inventory Disclosure [Abstract] | |
Inventory Disclosure [Text Block] | INVENTORIES Inventories consisted of the following (amounts in thousands): June 30, December 31, Raw material $ 116,478 $ 128,170 Work-in-process 42,589 42,468 Finished goods 219,191 226,585 $ 378,258 $ 397,223 Inventories are reduced by estimated provisions for slow-moving and obsolete inventory. |
PROPERTY, PLANT AND EQUIPMENT,
PROPERTY, PLANT AND EQUIPMENT, NET | 6 Months Ended |
Jun. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | PROPERTY, PLANT AND EQUIPMENT, NET Property, plant and equipment, net consisted of the following (amounts in thousands): June 30, December 31, Land and improvements $ 42,009 $ 40,330 Buildings and improvements 239,455 237,507 Machinery and equipment 600,767 588,857 Tools, dies and molds 112,633 112,990 Construction-in-process 40,080 29,291 1,034,944 1,008,975 Less accumulated depreciation (727,332) (712,370) $ 307,612 $ 296,605 Depreciation on property, plant and equipment for the six months ended June 30, 2023 and 2022 totaled $20.8 million and $21.6 million, respectively. |
Other Current Liabilities
Other Current Liabilities | 6 Months Ended |
Jun. 30, 2023 | |
Other Liabilities, Current [Abstract] | |
Other Liabilities Disclosure | OTHER CURRENT LIABILITIES Other current liabilities consisted of the following (amounts in thousands): June 30, December 31, Compensation and benefits $ 49,723 $ 45,389 Warranty 21,994 19,914 Accrued insurance benefits 17,785 21,154 Customer rebates and deposits 17,419 16,279 Accrued other taxes 13,585 18,549 Operating lease liability 3,828 3,850 Accrued interest 4,978 5,040 Foreign government grant (1) 2,198 1,888 Settlement of legal matter (2) — 1,260 Other 21,316 18,605 $ 152,826 $ 151,928 (1) In August 2014, the Company received an approximately $17.0 million capital grant from the Italian government for asset damages related to the earthquake that occurred in May 2012 at one of our Italian subsidiaries. The grant was recorded as deferred income in non-current liabilities which is being amortized over the life of the reconstructed building. There are no specific stipulations associated with the government grant. |
WARRANTY
WARRANTY | 6 Months Ended |
Jun. 30, 2023 | |
Product Warranties Disclosures [Abstract] | |
WARRANTY COSTS | WARRANTY Changes in the warranty liability during the six months ended June 30, 2023 and 2022, respectively, consisted of the following (amounts in thousands): 2023 2022 Warranty liability at beginning of the period $ 19,914 $ 16,628 Provision for warranty liabilities 7,547 8,317 Warranty payments made (5,467) (5,690) Warranty liability at end of the period $ 21,994 $ 19,255 The Company provides limited warranties on workmanship on its products in all market segments. The majority of the Company’s products are subject to a limited warranty that ranges between less than one year and ten years, with certain product warranties being prorated after the first year. The Company calculates a provision for warranty expense based on past warranty experience. Warranty accruals are included as a component of other current liabilities on the Condensed Consolidated Balance Sheets. |
REVOLVING CREDIT FACILITY AND L
REVOLVING CREDIT FACILITY AND LONG-TERM DEBT | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
REVOLVING CREDIT FACILITY AND LONG-TERM DEBT | DEBT Long-term debt consisted of the following (amounts in thousands): June 30, 2023 Principal Balance Unamortized Debt Issuance Net Carrying Amount 7.00% senior secured notes due 2028 $ 400,000 $ (4,170) $ 395,830 Titan Europe credit facilities 27,311 — 27,311 Other debt 7,066 — 7,066 Total debt 434,377 (4,170) 430,207 Less amounts due within one year 18,536 — 18,536 Total long-term debt $ 415,841 $ (4,170) $ 411,671 December 31, 2022 Principal Balance Unamortized Debt Issuance Net Carrying Amount 7.00% senior secured notes due 2028 $ 400,000 $ (4,599) $ 395,401 Titan Europe credit facilities 37,362 — 37,362 Other debt 12,855 — 12,855 Total debt 450,217 (4,599) 445,618 Less amounts due within one year 30,857 — 30,857 Total long-term debt $ 419,360 $ (4,599) $ 414,761 Aggregate principal maturities of long-term debt at June 30, 2023 for each of the years (or other periods) set forth below were as follows (amounts in thousands): July 1 - December 31, 2023 $ 13,279 2024 10,519 2025 4,061 2026 1,957 2027 837 Thereafter 403,724 $ 434,377 7.00% senior secured notes due 2028 On April 22, 2021, the Company issued $400.0 million aggregate principal amount of 7.00% senior secured notes due April 2028 (the senior secured notes due 2028), guaranteed by certain of the Company's subsidiaries. Including the impact of debt issuance costs, these notes had an effective yield of 7.27% at issuance. These notes are secured by the land and buildings of the following subsidiaries of the Company: Titan Wheel Corporation of Illinois, Titan Tire Corporation, Titan Tire Corporation of Freeport, and Titan Tire Corporation of Bryan. The Company is subject to certain covenants associated with the senior secured notes due 2028 and remained in compliance with these debt covenants at June 30, 2023. Titan Europe credit facilities The Titan Europe credit facilities include borrowings from various institutions totaling $27.3 million in aggregate principal amount at June 30, 2023. Maturity dates on this debt range from less than one year to five years. The interest rates range from 0.5% to 6.5%. Revolving credit facility The Company has a $125.0 million revolving credit facility with BMO Harris Bank N.A., as agent, and other financial institutions party thereto. The credit facility is collateralized by accounts receivable and inventory of certain of the Company’s domestic subsidiaries and is scheduled to mature in October 2026. The credit facility can be expanded by up to $50 million through an accordion provision within the agreement. From time to time Titan's availability under this credit facility may be less than $125.0 million as a result of outstanding letters of credit and eligible accounts receivable and inventory balances at certain of its domestic subsidiaries. Based on eligible accounts receivable and inventory balances, the Company's amount available for borrowing totaled $117.9 million at June 30, 2023. With outstanding letters of credit totaling $6.2 million, the net amount available for borrowing under the credit facility totaled $111.7 million at June 30, 2023. There were no borrowings under the revolving credit facility at June 30, 2023. Other debt The Company has a working capital loan at Titan Pneus do Brasil Ltda at varying interest rates from approximately 5% to 6.5%, which totaled $7.1 million at June 30, 2023. The maturity date on this loan is one year or less. The Company expects to negotiate an extension of the maturity date on this loan with the respective financial institution or repay, as needed. |
LEASE COMMITMENTS (Notes)
LEASE COMMITMENTS (Notes) | 6 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
Lessee, Operating Leases [Text Block] | LEASESThe Company leases certain buildings and equipment under both operating and finance leases. Certain lease agreements provide for renewal options, fair value purchase options, and payment of property taxes, maintenance, and insurance by the Company. Under FASB Accounting Standards Codification Topic 842 "Leases," the Company made an accounting policy election, by class of underlying asset, not to separate non-lease components such as those previously stated from lease components and instead will treat the lease agreement as a single lease component for all asset classes. Operating right-of-use (ROU) assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent Titan's obligations to make lease payments arising from the lease. The majority of Titan's leases are operating leases. Operating lease ROU assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. As most of Titan's leases do not provide an implicit interest rate, the Company used its incremental borrowing rate (7.27%), based on the information available at the lease commencement date, in determining the present value of lease payments. Operating lease expense is recognized on a straight-line basis over the lease term and is included in cost of sales and selling, general and administrative expenses on the Condensed Consolidated Statements of Operations. Amortization expense associated with finance leases is included in cost of sales and selling, general and administrative expenses, and interest expense associated with finance leases is included in interest expense in the Condensed Consolidated Statements of Operations. Supplemental balance sheet information related to leases was as follows (amounts in thousands): Balance Sheet Classification June 30, 2023 December 31, 2022 Operating lease ROU assets Operating lease assets $ 6,999 $ 8,932 Operating lease current liabilities Other current liabilities $ 3,828 $ 3,850 Operating lease long-term liabilities Other long-term liabilities 2,789 2,409 Total operating lease liabilities $ 6,617 $ 6,259 Finance lease, gross Property, plant & equipment, net $ 6,944 $ 6,994 Finance lease accumulated depreciation Property, plant & equipment, net (4,600) (3,820) Finance lease, net $ 2,344 $ 3,174 Finance lease current liabilities Other current liabilities $ 1,232 $ 2,562 Finance lease long-term liabilities Other long-term liabilities 1,635 3,444 Total finance lease liabilities $ 2,867 $ 6,006 At June 30, 2023, maturities of lease liabilities were as follows (amounts in thousands): Operating Leases Finance Leases July 1 - December 31, 2023 $ 2,433 $ 767 2024 2,861 1,051 2025 1,022 690 2026 347 456 2027 259 57 Thereafter 343 282 Total lease payments $ 7,265 $ 3,303 Less imputed interest 648 436 $ 6,617 $ 2,867 Weighted average remaining lease term (in years) 2.47 3.65 |
Lessee, Finance Leases [Text Block] | LEASESThe Company leases certain buildings and equipment under both operating and finance leases. Certain lease agreements provide for renewal options, fair value purchase options, and payment of property taxes, maintenance, and insurance by the Company. Under FASB Accounting Standards Codification Topic 842 "Leases," the Company made an accounting policy election, by class of underlying asset, not to separate non-lease components such as those previously stated from lease components and instead will treat the lease agreement as a single lease component for all asset classes. Operating right-of-use (ROU) assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent Titan's obligations to make lease payments arising from the lease. The majority of Titan's leases are operating leases. Operating lease ROU assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. As most of Titan's leases do not provide an implicit interest rate, the Company used its incremental borrowing rate (7.27%), based on the information available at the lease commencement date, in determining the present value of lease payments. Operating lease expense is recognized on a straight-line basis over the lease term and is included in cost of sales and selling, general and administrative expenses on the Condensed Consolidated Statements of Operations. Amortization expense associated with finance leases is included in cost of sales and selling, general and administrative expenses, and interest expense associated with finance leases is included in interest expense in the Condensed Consolidated Statements of Operations. Supplemental balance sheet information related to leases was as follows (amounts in thousands): Balance Sheet Classification June 30, 2023 December 31, 2022 Operating lease ROU assets Operating lease assets $ 6,999 $ 8,932 Operating lease current liabilities Other current liabilities $ 3,828 $ 3,850 Operating lease long-term liabilities Other long-term liabilities 2,789 2,409 Total operating lease liabilities $ 6,617 $ 6,259 Finance lease, gross Property, plant & equipment, net $ 6,944 $ 6,994 Finance lease accumulated depreciation Property, plant & equipment, net (4,600) (3,820) Finance lease, net $ 2,344 $ 3,174 Finance lease current liabilities Other current liabilities $ 1,232 $ 2,562 Finance lease long-term liabilities Other long-term liabilities 1,635 3,444 Total finance lease liabilities $ 2,867 $ 6,006 At June 30, 2023, maturities of lease liabilities were as follows (amounts in thousands): Operating Leases Finance Leases July 1 - December 31, 2023 $ 2,433 $ 767 2024 2,861 1,051 2025 1,022 690 2026 347 456 2027 259 57 Thereafter 343 282 Total lease payments $ 7,265 $ 3,303 Less imputed interest 648 436 $ 6,617 $ 2,867 Weighted average remaining lease term (in years) 2.47 3.65 |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 6 Months Ended |
Jun. 30, 2023 | |
Retirement Benefits [Abstract] | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | EMPLOYEE BENEFIT PLANS The Company has three frozen defined benefit pension plans covering certain employees or former employees of three U.S. subsidiaries. The Company also has pension plans covering certain employees of several foreign subsidiaries. The Company also sponsors a number of defined contribution plans in the U.S. and at foreign subsidiaries. The Company contributed approximately $0.1 million to the pension plans during the six months ended June 30, 2023 and no amounts are expected to be contributed to the pension plans during the remainder of 2023. The components of net periodic pension cost consisted of the following for the periods set forth below (amounts in thousands): Three months ended Six months ended June 30, June 30, 2023 2022 2023 2022 Service cost $ 113 $ 244 $ 219 $ 1,172 Interest cost 1,048 717 2,075 1,434 Expected return on assets (1,167) (1,518) (2,334) (3,036) Amortization of unrecognized prior service cost (18) (16) (33) (32) Amortization of net unrecognized loss (gain) 238 (7) 478 (13) Net periodic pension cost $ 214 $ (580) $ 405 $ (475) |
VARIABLE INTEREST ENTITIES (Not
VARIABLE INTEREST ENTITIES (Notes) | 6 Months Ended |
Jun. 30, 2023 | |
Variable Interest Entity, Measure of Activity [Abstract] | |
Variable Interest Entities Disclosure [Text Block] | VARIABLE INTEREST ENTITIES The Company holds a variable interest in two joint ventures for which the Titan is the primary beneficiary. One of these joint ventures operate distribution facilities that primarily distribute mining products. Titan is the 50% owner of the distribution facility located in Canada. Titan is also a 50% owner of a manufacturer of undercarriage components and complete track systems for earthmoving machines in India. The Company’s variable interests in these joint ventures relate to sales of Titan products to these entities, consigned inventory, and working capital loans. As the primary beneficiary of these variable interest entities (VIEs), the VIEs’ assets, liabilities, and results of operations are included in the Company’s condensed consolidated financial statements. The other equity holders’ interests are reflected in “Net income attributable to noncontrolling interests” in the Condensed Consolidated Statements of Operations and “Noncontrolling interests” in the Condensed Consolidated Balance Sheets. The following table summarizes the carrying amount of the VIEs’ assets and liabilities included in the Company’s Condensed Consolidated Balance Sheets (amounts in thousands): June 30, December 31, 2022 Cash and cash equivalents $ 1,224 $ 1,729 Inventory 3,460 2,581 Other current assets 3,387 4,179 Property, plant and equipment, net 4,540 4,657 Other non-current assets 396 465 Total assets $ 13,007 $ 13,611 Current liabilities $ 2,090 $ 2,077 Other long-term liabilities 933 1,062 Total liabilities $ 3,023 $ 3,139 All assets in the above table can only be used to settle obligations of the consolidated VIE to which the respective assets relate. Liabilities are nonrecourse obligations. Amounts presented in the table above are adjusted for intercompany eliminations. The Company holds variable interests in certain VIEs that are not consolidated because Titan is not the primary beneficiary. The Company's involvement with these entities is in the form of direct equity interests and prepayments related to purchases of materials. The maximum exposure to loss represents the loss of assets recognized by Titan relating to non-consolidated entities and amounts due to the non-consolidated assets. The assets and liabilities recognized in Titan's Condensed Consolidated Balance Sheets related to Titan's interest in these non-consolidated VIEs and the Company's maximum exposure to loss relating to non-consolidated VIEs as of the dates set forth below were as follows (amounts in thousands): June 30, 2023 December 31, 2022 Investments $ 7,111 $ 6,827 Total VIE assets 7,111 6,827 Accounts payable to the non-consolidated VIEs 4,851 3,936 Maximum exposure to loss $ 11,962 $ 10,763 |
ROYALTY EXPENSE
ROYALTY EXPENSE | 6 Months Ended |
Jun. 30, 2023 | |
Other Income and Expenses [Abstract] | |
ROYALTY EXPENSE | ROYALTY EXPENSEThe Company has trademark license agreements with The Goodyear Tire & Rubber Company to manufacture and sell certain farm tires under the Goodyear brand. These agreements cover sales in North America, Latin America, Europe, the Middle East, Africa, Russia, and other Commonwealth of Independent States countries. Each of these agreements is scheduled to expire in 2025. Royalty expenses were $1.9 million and $3.0 million for the three months ended June 30, 2023 and 2022, respectively, and $4.9 million and $5.9 million for the six months ended June 30, 2023 and 2022, respectively. |
OTHER INCOME
OTHER INCOME | 6 Months Ended |
Jun. 30, 2023 | |
Other Income and Expenses [Abstract] | |
OTHER INCOME, NET | OTHER INCOME Other income consisted of the following (amounts in thousands): Three months ended Six months ended June 30, June 30, 2023 2022 2023 2022 Income on indirect taxes (1) $ 475 $ 22,450 $ 475 $ 22,450 Loss on sale of Australian wheel business (2) — — — (10,890) Proceeds from government grant (3) — — — 1,324 Equity investment income 277 322 732 570 Gain on sale of assets 61 72 71 182 Other income 373 850 670 1,199 $ 1,186 $ 23,694 $ 1,948 $ 14,835 (1) In May 2022, the Brazilian tax authorities approved indirect tax credits to be applied against future tax obligations. Refer to Footnote 13 for additional information. (2) The loss on sale of the Australian wheel business is comprised primarily of the release of the cumulative translation adjustment of approximately $10.0 million and closing costs associated with the completion of the transaction of approximately $0.9 million. Refer to Note 1 for additional information. (3) In August 2014, the Company received approximately $17.0 million capital grant from the Italian government for asset damages related to the earthquake that occurred in May 2012 at one of our Italian subsidiaries. The grant was recorded as deferred income in non-current liabilities which is being amortized over the life of the reconstructed building. There are no specific stipulations associated with the government grant. The Company received proceeds of an additional $1.9 million from the grant during the six months ended June 30, 2022, of which $1.3 million was recorded as other income to match to the historical depreciation recorded on the underlying asset. |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The Company recorded income tax expense of $9.4 million and $19.0 million for the three months ended June 30, 2023 and 2022, respectively. For the six months ended June 30, 2023 and 2022, the Company recorded income tax expense of $23.6 million and $27.7 million, respectively. The Company's effective income tax rate was 22.8% and 21.6% for the three months ended June 30, 2023 and 2022, respectively, and 26.6% and 22.8% for the six months ended June 30, 2023 and 2022, respectively. For the six months ended June 30, 2023 and 2022, the income tax expense each period differed due to an overall pre-tax income decrease which resulted in the fluctuation in the effective tax rate. The Company’s 2023 and 2022 income tax expense and rates differed from the amount of income tax determined by applying the U.S. Federal income tax rate to pre-tax income primarily as a result of foreign income tax rate differential on the mix of earnings, non-deductible royalty expenses in certain foreign jurisdictions, and certain permanent foreign inclusion items on the domestic provision. The Company continues to monitor the realization of its deferred tax assets and assesses the need for a valuation allowance. The Company analyzes available positive and negative evidence to determine if a valuation allowance is needed based on the weight of the evidence. This objectively verifiable evidence primarily includes the past three years' profit and loss positions. This process requires management to make estimates, assumptions, and judgments that are uncertain in nature. The Company has established valuation allowances with respect to certain deferred tax assets in the U.S. and certain foreign jurisdictions and continues to monitor and assess the need for valuation allowances in all its jurisdictions. Brazilian Tax Credits In June 2021, the Company’s Brazilian subsidiaries received a notice that they had prevailed on an existing legal claim in regards to certain non-income (indirect) taxes that had been previously charged and paid. The matter specifically relates to companies’ rights to exclude the state tax on goods circulation (a value-added-tax or VAT equivalent, known in Brazil as “ICMS”) from the calculation of certain additional indirect taxes (specifically the program of social integration (“PIS”) and contribution for financing of social security (“COFINS”) levied by the Brazilian States on the sale of goods. During the second quarter of 2023, one of the Company’s Brazilian subsidiaries received a notice that they had prevailed on an additional legal claim in regards to the non-income (indirect) taxes credits that had been granted in a prior year ruling. The most recent ruling exempted from taxes, the interest benefit on the indirect tax credits granted in prior year. For the three and six months ended June 30, 2023, the Company recorded indirect tax credits of $0.5 million within other income and $2.6 million within provision for income taxes in the condensed consolidated statements of operations. During the second quarter of 2022, the Company submitted the related supporting documentation and received the approval from the Brazilian tax authorities for one of its Brazilian subsidiaries. For the three and six months ended June 30, 2022, the Company recorded indirect tax credits of $22.5 million within other income in the condensed consolidated statements of operations. The Company also recorded $7.8 million of income tax expense associated with the recognition of these indirect tax credits. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE Earnings per share (EPS) were as follows (amounts in thousands, except per share data): Three months ended Six months ended June 30, June 30, 2023 2022 2023 2022 Net income attributable to Titan and applicable to common shareholders $ 30,207 $ 67,171 $ 62,045 $ 91,093 Determination of shares: Weighted average shares outstanding (basic) 62,931 62,671 62,918 63,262 Effect of restricted stock and stock options 303 550 486 511 Weighted average shares outstanding (diluted) $ 63,234 $ 63,221 $ 63,404 $ 63,773 Earnings per common share: Basic $ 0.48 $ 1.07 $ 0.99 $ 1.44 Diluted $ 0.48 $ 1.06 $ 0.98 $ 1.43 |
LITIGATION
LITIGATION | 6 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
LITIGATION | LITIGATIONThe Company is a party to routine legal proceedings arising out of the normal course of business. Due to the difficult nature of predicting unresolved and future legal claims, the Company cannot anticipate or predict the material adverse effect on its consolidated financial condition, results of operations, or cash flows as a result of efforts to comply with, or liabilities pertaining to, legal judgments. In the opinion of management, the Company is not currently involved in any legal proceedings which, individually or in the aggregate, could have a material effect on its financial position, results of operations, or cash flows. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Segment information | SEGMENT INFORMATIONThe Company has aggregated its operating units into reportable segments based on its three customer markets: agricultural, earthmoving/construction, and consumer. Each reportable segment includes wheels, tires, wheel/tire assemblies, and undercarriage systems and components. These segments are based on the information used by the Chief Executive Officer to make certain operating decisions, allocate portions of capital expenditures, and assess segment performance. Segment external sales, expenses, and income from operations are determined based on the results of operations for the operating units of the Company's manufacturing facilities. Segment assets are generally determined on the basis of the tangible assets located at such operating units’ manufacturing facilities and the intangible assets associated with the acquisitions of such operating units. However, certain operating units’ property, plant and equipment balances are carried at the corporate level. The table below presents information about certain operating results, separated by market segments, for the three and six months ended June 30, 2023 and 2022 (amounts in thousands): Three months ended Six months ended June 30, June 30, 2023 2022 2023 2022 Net sales Agricultural $ 269,148 $ 318,585 $ 575,006 $ 628,184 Earthmoving/construction 174,683 210,370 373,607 411,629 Consumer 37,345 43,940 81,207 89,079 $ 481,176 $ 572,895 $ 1,029,820 $ 1,128,892 Gross profit Agricultural $ 48,736 $ 61,921 $ 97,986 $ 109,845 Earthmoving/construction 29,102 36,317 66,326 67,692 Consumer 8,057 11,415 17,140 18,845 $ 85,895 $ 109,653 $ 181,452 $ 196,382 Income from operations Agricultural $ 32,119 $ 44,884 $ 64,688 $ 75,001 Earthmoving/construction 14,522 22,276 38,060 38,116 Consumer 5,865 9,238 12,657 14,120 Corporate & Unallocated (6,608) (6,697) (14,371) (12,828) Income from operations $ 45,898 $ 69,701 $ 101,034 $ 114,409 Interest expense (5,762) (7,707) (12,254) (15,614) Foreign exchange gain (loss) 2 2,234 (1,758) 7,551 Other income 1,186 23,694 1,948 14,835 Income before income taxes $ 41,324 $ 87,922 $ 88,970 $ 121,181 Assets by segment were as follows as of the dates set forth below (amounts in thousands): June 30, December 31, Total assets Agricultural $ 576,182 $ 548,523 Earthmoving/construction 524,640 538,064 Consumer 136,811 133,213 Corporate & Unallocated 67,518 64,830 $ 1,305,151 $ 1,284,630 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 6 Months Ended |
Jun. 30, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | RELATED PARTY TRANSACTIONSThe Company sells products and pays commissions to companies controlled by persons related to the Chairman of the Board of Directors of the Company, Mr. Maurice Taylor. The related party is Mr. Fred Taylor, who was Mr. Maurice Taylor’s brother. Mr. Fred Taylor passed away on December 13, 2021. The companies with which Mr. Fred Taylor was associated that do business with Titan include the following: Blacksmith OTR, LLC; F.B.T. Enterprises, Inc.; Green Carbon, Inc.; Silverstone, Inc.; and OTR Wheel Engineering, Inc. Sales of Titan products to these companies were approximately $1.0 million and $2.4 million for the three and six months ended June 30, 2023, and approximately $1.0 million and $2.3 million for the three and six months ended June 30, 2022. Titan had trade receivables due from these companies of approximately $0.5 million at June 30, 2023, and approximately $0.2 million at December 31, 2022. Titan had purchases from these companies of approximately $0.0 million and $0.2 million for the three and six months ended June 30, 2023, and approximately $0.3 million and $0.5 million for the three and six months ended June 30, 2022. Sales commissions accrued to the above companies were approximately $0.1 million and $0.3 million for the three and six months ended June 30, 2023 as compared to $0.4 million and $0.9 million accrued for the three and six months ended June 30, 2022. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Notes) | 6 Months Ended |
Jun. 30, 2023 | |
Stockholders' Equity Note [Abstract] | |
Comprehensive Loss Note | ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME Accumulated other comprehensive loss consisted of the following (amounts in thousands): Currency Gain (Loss) on Unrecognized Total Balance at April 1, 2023 $ (235,673) $ 1,113 $ (9,297) $ (243,857) Currency translation adjustments, net 2,212 — — 2,212 Defined benefit pension plans: Amortization of unrecognized losses and prior service cost, net of tax of $(41) — — 123 123 Derivative loss — (39) — (39) Balance at June 30, 2023 $ (233,461) $ 1,074 $ (9,174) $ (241,561) Currency Gain (Loss) on Unrecognized Total Balance at January 1, 2023 $ (243,712) $ 1,224 $ (9,267) $ (251,755) Currency translation adjustments, net 10,251 — — 10,251 Defined benefit pension plans: Amortization of unrecognized losses and prior service cost, net of tax of $(30) — — 93 93 Derivative loss — (150) — (150) Balance at June 30, 2023 $ (233,461) $ 1,074 $ (9,174) $ (241,561) Currency Gain (Loss) on Unrecognized Total Balance at April 1, 2022 $ (217,602) $ 264 $ (9,838) $ (227,176) Currency translation adjustments, net (18,765) — — (18,765) Defined benefit pension plans: Amortization of unrecognized losses and prior service cost, net of tax of $(162) — — 431 431 Derivative gain — 275 — 275 Balance at June 30, 2022 $ (236,367) $ 539 $ (9,407) $ (245,235) Currency Gain (Loss) on Unrecognized Total Balance at January 1, 2022 $ (236,059) $ (39) $ (10,382) $ (246,480) Currency translation adjustments, net (1) (308) — — (308) Defined benefit pension plans: Amortization of unrecognized losses and prior service cost, net of tax of $(344) — — 975 975 Derivative gain — 578 — 578 Balance at June 30, 2022 $ (236,367) $ 539 $ (9,407) $ (245,235) (1) The currency translation adjustments, net includes currency translation on amounts reclassified into other expense within the Condensed Consolidated Statements of Operations of approximately $10.0 million for the six months ended June 30, 2022 related to the sale of the Australian wheel business. Refer to Note 1 and 12 for additional information. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Jun. 30, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTSThe Company has evaluated subsequent events through the filing of this Form 10-Q and determined that there have been no subsequent events that have occurred that would require adjustments or disclosures in the condensed consolidated financial statements. |
ACCOUNTING POLICIES (Policies)
ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Fair value of financial instruments | Fair value of financial instrumentsThe Company records all financial instruments, including cash and cash equivalents, accounts receivable, notes receivable, accounts payable, other accruals, and notes payable at cost, which approximates fair value due to their short term or stated rates. Investments in marketable equity securities are recorded at fair value. Our 7.00% senior secured notes due 2028 were carried at a cost of $395.8 million at June 30, 2023. The fair value of the senior secured notes due 2028 at June 30, 2023, as obtained through an independent pricing source, was approximately $373.0 million. |
New Accounting Pronouncements, Policy | Adoption of new accounting standards In September 2022, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2022-04, Liabilities—Supplier Finance Programs (Subtopic 405-50) Disclosure of Supplier Finance Program Obligations ("ASU No. 2022-04"). The ASU requires that a buyer in a supplier finance program disclose sufficient information about the program to allow a user of financial statements to understand the program’s nature, activity during the period, and potential magnitude. The amendments in this ASU will be applied retrospectively to each period in which a balance sheet is presented, with the exception of a new requirement to disclose a rollforward of program activity, which will be applied prospectively. The amendments in the ASU are effective for fiscal years beginning after December 15, 2022, with early adoption permitted. The Company adopted the impact of this ASU effective March 31, 2023 and incorporated the required disclosures within Note 1 to condensed consolidated financial statements. |
ACCOUNTS RECEIVABLE (Tables)
ACCOUNTS RECEIVABLE (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | Accounts receivable consisted of the following (amounts in thousands): June 30, December 31, Accounts receivable $ 286,012 $ 272,928 Allowance for credit losses (5,324) (6,170) Accounts receivable, net $ 280,688 $ 266,758 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | Inventories consisted of the following (amounts in thousands): June 30, December 31, Raw material $ 116,478 $ 128,170 Work-in-process 42,589 42,468 Finished goods 219,191 226,585 $ 378,258 $ 397,223 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT, NET (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | Property, plant and equipment, net consisted of the following (amounts in thousands): June 30, December 31, Land and improvements $ 42,009 $ 40,330 Buildings and improvements 239,455 237,507 Machinery and equipment 600,767 588,857 Tools, dies and molds 112,633 112,990 Construction-in-process 40,080 29,291 1,034,944 1,008,975 Less accumulated depreciation (727,332) (712,370) $ 307,612 $ 296,605 |
Other Liabilities (Tables)
Other Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Other Liabilities, Current [Abstract] | |
Schedule of Accrued Liabilities | Other current liabilities consisted of the following (amounts in thousands): June 30, December 31, Compensation and benefits $ 49,723 $ 45,389 Warranty 21,994 19,914 Accrued insurance benefits 17,785 21,154 Customer rebates and deposits 17,419 16,279 Accrued other taxes 13,585 18,549 Operating lease liability 3,828 3,850 Accrued interest 4,978 5,040 Foreign government grant (1) 2,198 1,888 Settlement of legal matter (2) — 1,260 Other 21,316 18,605 $ 152,826 $ 151,928 (1) In August 2014, the Company received an approximately $17.0 million capital grant from the Italian government for asset damages related to the earthquake that occurred in May 2012 at one of our Italian subsidiaries. The grant was recorded as deferred income in non-current liabilities which is being amortized over the life of the reconstructed building. There are no specific stipulations associated with the government grant. |
WARRANTY (Tables)
WARRANTY (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Product Warranties Disclosures [Abstract] | |
Schedule of Product Warranty Liability [Table Text Block] | Changes in the warranty liability during the six months ended June 30, 2023 and 2022, respectively, consisted of the following (amounts in thousands): 2023 2022 Warranty liability at beginning of the period $ 19,914 $ 16,628 Provision for warranty liabilities 7,547 8,317 Warranty payments made (5,467) (5,690) Warranty liability at end of the period $ 21,994 $ 19,255 |
REVOLVING CREDIT FACILITY AND_2
REVOLVING CREDIT FACILITY AND LONG-TERM DEBT (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Debt Instrument [Line Items] | |
Schedule of Long-term Debt Instruments [Table Text Block] | Long-term debt consisted of the following (amounts in thousands): June 30, 2023 Principal Balance Unamortized Debt Issuance Net Carrying Amount 7.00% senior secured notes due 2028 $ 400,000 $ (4,170) $ 395,830 Titan Europe credit facilities 27,311 — 27,311 Other debt 7,066 — 7,066 Total debt 434,377 (4,170) 430,207 Less amounts due within one year 18,536 — 18,536 Total long-term debt $ 415,841 $ (4,170) $ 411,671 December 31, 2022 Principal Balance Unamortized Debt Issuance Net Carrying Amount 7.00% senior secured notes due 2028 $ 400,000 $ (4,599) $ 395,401 Titan Europe credit facilities 37,362 — 37,362 Other debt 12,855 — 12,855 Total debt 450,217 (4,599) 445,618 Less amounts due within one year 30,857 — 30,857 Total long-term debt $ 419,360 $ (4,599) $ 414,761 |
Schedule of Maturities of Long-term Debt [Table Text Block] | Aggregate principal maturities of long-term debt at June 30, 2023 for each of the years (or other periods) set forth below were as follows (amounts in thousands): July 1 - December 31, 2023 $ 13,279 2024 10,519 2025 4,061 2026 1,957 2027 837 Thereafter 403,724 $ 434,377 |
LEASE COMMITMENTS (Tables)
LEASE COMMITMENTS (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
Lease, Cost [Table Text Block] | Supplemental balance sheet information related to leases was as follows (amounts in thousands): Balance Sheet Classification June 30, 2023 December 31, 2022 Operating lease ROU assets Operating lease assets $ 6,999 $ 8,932 Operating lease current liabilities Other current liabilities $ 3,828 $ 3,850 Operating lease long-term liabilities Other long-term liabilities 2,789 2,409 Total operating lease liabilities $ 6,617 $ 6,259 Finance lease, gross Property, plant & equipment, net $ 6,944 $ 6,994 Finance lease accumulated depreciation Property, plant & equipment, net (4,600) (3,820) Finance lease, net $ 2,344 $ 3,174 Finance lease current liabilities Other current liabilities $ 1,232 $ 2,562 Finance lease long-term liabilities Other long-term liabilities 1,635 3,444 Total finance lease liabilities $ 2,867 $ 6,006 |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | At June 30, 2023, maturities of lease liabilities were as follows (amounts in thousands): Operating Leases Finance Leases July 1 - December 31, 2023 $ 2,433 $ 767 2024 2,861 1,051 2025 1,022 690 2026 347 456 2027 259 57 Thereafter 343 282 Total lease payments $ 7,265 $ 3,303 Less imputed interest 648 436 $ 6,617 $ 2,867 Weighted average remaining lease term (in years) 2.47 3.65 |
Finance Lease, Liability, Maturity [Table Text Block] | Operating Leases Finance Leases July 1 - December 31, 2023 $ 2,433 $ 767 2024 2,861 1,051 2025 1,022 690 2026 347 456 2027 259 57 Thereafter 343 282 Total lease payments $ 7,265 $ 3,303 Less imputed interest 648 436 $ 6,617 $ 2,867 Weighted average remaining lease term (in years) 2.47 3.65 |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Retirement Benefits [Abstract] | |
Schedule of Defined Benefit Plans Disclosures [Table Text Block] | The components of net periodic pension cost consisted of the following for the periods set forth below (amounts in thousands): Three months ended Six months ended June 30, June 30, 2023 2022 2023 2022 Service cost $ 113 $ 244 $ 219 $ 1,172 Interest cost 1,048 717 2,075 1,434 Expected return on assets (1,167) (1,518) (2,334) (3,036) Amortization of unrecognized prior service cost (18) (16) (33) (32) Amortization of net unrecognized loss (gain) 238 (7) 478 (13) Net periodic pension cost $ 214 $ (580) $ 405 $ (475) |
VARIABLE INTEREST ENTITIES (Tab
VARIABLE INTEREST ENTITIES (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Variable Interest Entity, Measure of Activity [Abstract] | |
Schedule of Variable Interest Entities [Table Text Block] | The following table summarizes the carrying amount of the VIEs’ assets and liabilities included in the Company’s Condensed Consolidated Balance Sheets (amounts in thousands): June 30, December 31, 2022 Cash and cash equivalents $ 1,224 $ 1,729 Inventory 3,460 2,581 Other current assets 3,387 4,179 Property, plant and equipment, net 4,540 4,657 Other non-current assets 396 465 Total assets $ 13,007 $ 13,611 Current liabilities $ 2,090 $ 2,077 Other long-term liabilities 933 1,062 Total liabilities $ 3,023 $ 3,139 |
Schedule of Non Consolidated Variable Interest Entities [Table Text Block] | The assets and liabilities recognized in Titan's Condensed Consolidated Balance Sheets related to Titan's interest in these non-consolidated VIEs and the Company's maximum exposure to loss relating to non-consolidated VIEs as of the dates set forth below were as follows (amounts in thousands): June 30, 2023 December 31, 2022 Investments $ 7,111 $ 6,827 Total VIE assets 7,111 6,827 Accounts payable to the non-consolidated VIEs 4,851 3,936 Maximum exposure to loss $ 11,962 $ 10,763 |
OTHER INCOME (Tables)
OTHER INCOME (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Other Income and Expenses [Abstract] | |
Other Income [Table Text Block] | Other income consisted of the following (amounts in thousands): Three months ended Six months ended June 30, June 30, 2023 2022 2023 2022 Income on indirect taxes (1) $ 475 $ 22,450 $ 475 $ 22,450 Loss on sale of Australian wheel business (2) — — — (10,890) Proceeds from government grant (3) — — — 1,324 Equity investment income 277 322 732 570 Gain on sale of assets 61 72 71 182 Other income 373 850 670 1,199 $ 1,186 $ 23,694 $ 1,948 $ 14,835 (1) In May 2022, the Brazilian tax authorities approved indirect tax credits to be applied against future tax obligations. Refer to Footnote 13 for additional information. (2) The loss on sale of the Australian wheel business is comprised primarily of the release of the cumulative translation adjustment of approximately $10.0 million and closing costs associated with the completion of the transaction of approximately $0.9 million. Refer to Note 1 for additional information. (3) In August 2014, the Company received approximately $17.0 million capital grant from the Italian government for asset damages related to the earthquake that occurred in May 2012 at one of our Italian subsidiaries. The grant was recorded as deferred income in non-current liabilities which is being amortized over the life of the reconstructed building. There are no specific stipulations associated with the government grant. The Company received proceeds of an additional $1.9 million from the grant during the six months ended June 30, 2022, of which $1.3 million was recorded as other income to match to the historical depreciation recorded on the underlying asset. |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Earnings per share (EPS) were as follows (amounts in thousands, except per share data): Three months ended Six months ended June 30, June 30, 2023 2022 2023 2022 Net income attributable to Titan and applicable to common shareholders $ 30,207 $ 67,171 $ 62,045 $ 91,093 Determination of shares: Weighted average shares outstanding (basic) 62,931 62,671 62,918 63,262 Effect of restricted stock and stock options 303 550 486 511 Weighted average shares outstanding (diluted) $ 63,234 $ 63,221 $ 63,404 $ 63,773 Earnings per common share: Basic $ 0.48 $ 1.07 $ 0.99 $ 1.44 Diluted $ 0.48 $ 1.06 $ 0.98 $ 1.43 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting Information [Line Items] | |
Reconciliation of Revenue from Segments to Consolidated [Table Text Block] | The table below presents information about certain operating results, separated by market segments, for the three and six months ended June 30, 2023 and 2022 (amounts in thousands): Three months ended Six months ended June 30, June 30, 2023 2022 2023 2022 Net sales Agricultural $ 269,148 $ 318,585 $ 575,006 $ 628,184 Earthmoving/construction 174,683 210,370 373,607 411,629 Consumer 37,345 43,940 81,207 89,079 $ 481,176 $ 572,895 $ 1,029,820 $ 1,128,892 Gross profit Agricultural $ 48,736 $ 61,921 $ 97,986 $ 109,845 Earthmoving/construction 29,102 36,317 66,326 67,692 Consumer 8,057 11,415 17,140 18,845 $ 85,895 $ 109,653 $ 181,452 $ 196,382 Income from operations Agricultural $ 32,119 $ 44,884 $ 64,688 $ 75,001 Earthmoving/construction 14,522 22,276 38,060 38,116 Consumer 5,865 9,238 12,657 14,120 Corporate & Unallocated (6,608) (6,697) (14,371) (12,828) Income from operations $ 45,898 $ 69,701 $ 101,034 $ 114,409 Interest expense (5,762) (7,707) (12,254) (15,614) Foreign exchange gain (loss) 2 2,234 (1,758) 7,551 Other income 1,186 23,694 1,948 14,835 Income before income taxes $ 41,324 $ 87,922 $ 88,970 $ 121,181 |
Reconciliation of Assets from Segment to Consolidated [Table Text Block] | Assets by segment were as follows as of the dates set forth below (amounts in thousands): June 30, December 31, Total assets Agricultural $ 576,182 $ 548,523 Earthmoving/construction 524,640 538,064 Consumer 136,811 133,213 Corporate & Unallocated 67,518 64,830 $ 1,305,151 $ 1,284,630 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | Accumulated other comprehensive loss consisted of the following (amounts in thousands): Currency Gain (Loss) on Unrecognized Total Balance at April 1, 2023 $ (235,673) $ 1,113 $ (9,297) $ (243,857) Currency translation adjustments, net 2,212 — — 2,212 Defined benefit pension plans: Amortization of unrecognized losses and prior service cost, net of tax of $(41) — — 123 123 Derivative loss — (39) — (39) Balance at June 30, 2023 $ (233,461) $ 1,074 $ (9,174) $ (241,561) Currency Gain (Loss) on Unrecognized Total Balance at January 1, 2023 $ (243,712) $ 1,224 $ (9,267) $ (251,755) Currency translation adjustments, net 10,251 — — 10,251 Defined benefit pension plans: Amortization of unrecognized losses and prior service cost, net of tax of $(30) — — 93 93 Derivative loss — (150) — (150) Balance at June 30, 2023 $ (233,461) $ 1,074 $ (9,174) $ (241,561) Currency Gain (Loss) on Unrecognized Total Balance at April 1, 2022 $ (217,602) $ 264 $ (9,838) $ (227,176) Currency translation adjustments, net (18,765) — — (18,765) Defined benefit pension plans: Amortization of unrecognized losses and prior service cost, net of tax of $(162) — — 431 431 Derivative gain — 275 — 275 Balance at June 30, 2022 $ (236,367) $ 539 $ (9,407) $ (245,235) Currency Gain (Loss) on Unrecognized Total Balance at January 1, 2022 $ (236,059) $ (39) $ (10,382) $ (246,480) Currency translation adjustments, net (1) (308) — — (308) Defined benefit pension plans: Amortization of unrecognized losses and prior service cost, net of tax of $(344) — — 975 975 Derivative gain — 578 — 578 Balance at June 30, 2022 $ (236,367) $ 539 $ (9,407) $ (245,235) (1) The currency translation adjustments, net includes currency translation on amounts reclassified into other expense within the Condensed Consolidated Statements of Operations of approximately $10.0 million for the six months ended June 30, 2022 related to the sale of the Australian wheel business. Refer to Note 1 and 12 for additional information. |
ACCOUNTING POLICIES (Details)
ACCOUNTING POLICIES (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2023 | Mar. 31, 2023 | Mar. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 7% | 7% | ||||
Long-term Debt | $ 395,800 | $ 395,800 | ||||
Debt Instrument, Fair Value Disclosure | 373,000 | 373,000 | ||||
Proceeds from Divestiture of Interest in Consolidated Subsidiaries | $ 17,500 | |||||
Stock Repurchase Program, Authorized Amount | $ 50,000 | $ 50,000 | ||||
Stock Repurchased During Period, Shares | 493,279 | 603,068 | ||||
Treasury Stock, Value, Acquired, Cost Method | $ 5,097 | $ 1,293 | $ 25,000 | $ 6,400 | ||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | 43,600 | 43,600 | ||||
Supplier Finance Agreement | $ 6,700 | $ 6,700 | $ 11,800 | |||
Voltyre-Prom [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Noncontrolling Interest, Ownership Percentage by Parent | 64.30% | 64.30% | ||||
Senior Secured Notes 7.00 Percent | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 7% | 7% | ||||
Long-term Debt | $ 400,000 | $ 400,000 | $ 400,000 |
ACCOUNTS RECEIVABLE (Details)
ACCOUNTS RECEIVABLE (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Receivables [Abstract] | ||
Accounts receivable | $ 286,012 | $ 272,928 |
Allowance for credit losses | 5,324 | 6,170 |
Accounts receivable, net | $ 280,688 | $ 266,758 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Raw material | $ 116,478 | $ 128,170 |
Work-in-process | 42,589 | 42,468 |
Finished goods | 219,191 | 226,585 |
Inventory, Net, Total | $ 378,258 | $ 397,223 |
PROPERTY, PLANT AND EQUIPMENT_3
PROPERTY, PLANT AND EQUIPMENT, NET (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | $ 1,034,944 | $ 1,008,975 | |
Less accumulated depreciation | (727,332) | (712,370) | |
Property, Plant and Equipment, Net | 307,612 | 296,605 | |
Assets | 1,305,151 | 1,284,630 | |
Depreciation | 20,800 | $ 21,600 | |
Land and Land Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 42,009 | 40,330 | |
Building and Building Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 239,455 | 237,507 | |
Machinery and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 600,767 | 588,857 | |
Tools, Dies and Molds [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 112,633 | 112,990 | |
Construction in Progress [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | $ 40,080 | $ 29,291 |
Other Liabilities (Details)
Other Liabilities (Details) - USD ($) $ in Thousands | 6 Months Ended | |||
Aug. 31, 2014 | Jun. 30, 2022 | Jun. 30, 2023 | Dec. 31, 2022 | |
Other Liabilities, Current [Abstract] | ||||
Employee-related Liabilities, Current | $ 49,723 | $ 45,389 | ||
Product Warranty Accrual, Current | 21,994 | 19,914 | ||
Accrued Insurance, Current | 17,785 | 21,154 | ||
Contract with Customer, Liability, Current | 17,419 | 16,279 | ||
Accrual for Taxes Other than Income Taxes | 13,585 | 18,549 | ||
Operating Lease, Liability, Current | 3,828 | 3,850 | ||
Interest Payable, Current | 4,978 | 5,040 | ||
Government Assistance, Amount | 2,198 | 1,888 | ||
Loss Contingency Accrual | 0 | 1,260 | ||
Other Accrued Liabilities, Current | 21,316 | 18,605 | ||
Other current liabilities | $ 152,826 | $ 151,928 | ||
Government Assistance, Amount | $ 17,000 | $ 1,900 |
WARRANTY (Details)
WARRANTY (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Product Warranty Liability [Line Items] | ||
Warranty liability at beginning of the period | $ 19,914 | $ 16,628 |
Provision for warranty liabilities | 7,547 | 8,317 |
Warranty payments made | (5,467) | (5,690) |
Warranty liability at end of the period | $ 21,994 | $ 19,255 |
REVOLVING CREDIT FACILITY AND_3
REVOLVING CREDIT FACILITY AND LONG-TERM DEBT (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Effective Percentage | 7.27% | |
Debt Instruments [Abstract] | ||
7.00% senior secured notes due 2028 | $ 395,800 | |
Debt Instrument, Unamortized Discount | (4,170) | $ (4,599) |
Long-term Debt and Lease Obligation, Including Current Maturities | 430,207 | 445,618 |
Short-term debt | 18,536 | 30,857 |
Debt Instrument, Unamortized Discount, Current | 0 | 0 |
Debt Instrument, Unamortized Discount (Premium), Net | (4,170) | (4,599) |
Long-term debt | 411,671 | 414,761 |
Maturities of Long-term Debt [Abstract] | ||
July 1 - December 31, 2023 | 13,279 | |
2023 | 10,519 | |
2024 | 4,061 | |
2025 | 1,957 | |
2026 | 837 | |
Thereafter | 403,724 | |
Long-term Debt, Gross | $ 434,377 | |
Debt Instrument, Interest Rate, Stated Percentage | 7% | |
Letters of Credit Outstanding, Amount | $ 6,200 | |
Line of Credit Facility, Current Borrowing Capacity | 117,900 | |
Line of Credit Facility, Maximum Borrowing Capacity | 125,000 | |
Line of Credit Facility, Remaining Borrowing Capacity | 111,700 | |
Titan Europe [Member] | ||
Debt Instruments [Abstract] | ||
Other Borrowings | 27,311 | 37,362 |
Debt Instrument, Unamortized Discount, Noncurrent | $ 0 | 0 |
Titan Europe [Member] | Minimum | ||
Maturities of Long-term Debt [Abstract] | ||
Debt Instrument, Interest Rate, Stated Percentage | 0.50% | |
Titan Europe [Member] | Maximum | ||
Maturities of Long-term Debt [Abstract] | ||
Debt Instrument, Interest Rate, Stated Percentage | 6.50% | |
Other Debt Obligations [Member] | ||
Debt Instruments [Abstract] | ||
Other debt | $ 7,066 | 12,855 |
Debt Instrument, Unamortized Discount, Noncurrent | $ 0 | 0 |
Other Debt Obligations [Member] | Minimum | ||
Maturities of Long-term Debt [Abstract] | ||
Debt Instrument, Interest Rate, Stated Percentage | 5% | |
Other Debt Obligations [Member] | Maximum | ||
Maturities of Long-term Debt [Abstract] | ||
Debt Instrument, Interest Rate, Stated Percentage | 6.50% | |
Titan Brazil [Member] | ||
Debt Instruments [Abstract] | ||
Other debt | $ 7,100 | |
Senior Secured Notes 7.00 Percent | ||
Debt Instruments [Abstract] | ||
7.00% senior secured notes due 2028 | 400,000 | 400,000 |
Debt Instrument, Unamortized Discount | (4,170) | (4,599) |
Long-term Debt | $ 395,830 | 395,401 |
Maturities of Long-term Debt [Abstract] | ||
Debt Instrument, Interest Rate, Stated Percentage | 7% | |
Long-term Debt [Member] | ||
Debt Instruments [Abstract] | ||
Debt, Long-Term and Short-Term, Combined Amount | $ 434,377 | 450,217 |
Maturities of Long-term Debt [Abstract] | ||
Long-term Debt, Gross | $ 415,841 | $ 419,360 |
LEASE COMMITMENTS (Details)
LEASE COMMITMENTS (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Dec. 31, 2022 | |
Leases [Abstract] | ||
Operating Lease, Right-of-Use Asset | $ 6,999 | $ 8,932 |
Operating Lease, Liability, Current | 3,828 | 3,850 |
Operating Lease, Liability, Noncurrent | 2,789 | 2,409 |
Operating Lease, Liability | 6,617 | 6,259 |
Finance Lease, Gross | 6,944 | 6,994 |
Finance Lease Accumulated Depreciation | (4,600) | (3,820) |
Finance Lease, Right-of-Use Asset | 2,344 | 3,174 |
Finance Lease, Liability, Current | 1,232 | 2,562 |
Finance Lease, Liability, Noncurrent | 1,635 | 3,444 |
Finance Lease, Liability | 2,867 | $ 6,006 |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | ||
July 1 - December 31, 2023 | 2,433 | |
2024 | 2,861 | |
2025 | 1,022 | |
2026 | 347 | |
2027 | 259 | |
Thereafter | 343 | |
Total lease payments | 7,265 | |
Less imputed interest | 648 | |
Finance Lease, Liability, Payment, Due [Abstract] | ||
July 1 - December 31, 2023 | 767 | |
2024 | 1,051 | |
2025 | 690 | |
2026 | 456 | |
2027 | 57 | |
Thereafter | 282 | |
Total lease payment | 3,303 | |
Lease imputed interest | $ 436 | |
Operating Lease, Weighted Average Remaining Lease Term | 2 years 5 months 19 days | |
Finance Lease, Weighted Average Remaining Lease Term | 3 years 7 months 24 days | |
Operating Lease, Payments | $ 1,500 |
EMPLOYEE BENEFIT PLANS (Details
EMPLOYEE BENEFIT PLANS (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Contributions by Employer | $ 100 | |||
Pension Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 113 | $ 244 | 219 | $ 1,172 |
Interest cost | 1,048 | 717 | 2,075 | 1,434 |
Expected return on assets | (1,167) | (1,518) | (2,334) | (3,036) |
Amortization of unrecognized prior service cost | (18) | (16) | (33) | (32) |
Amortization of net unrecognized loss (gain) | 238 | (7) | 478 | (13) |
Net periodic pension cost | $ 214 | $ (580) | $ 405 | $ (475) |
VARIABLE INTEREST ENTITIES (Det
VARIABLE INTEREST ENTITIES (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Dec. 31, 2022 | |
Variable Interest Entity [Line Items] | ||
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 50% | |
Inventories | $ 378,258 | $ 397,223 |
Property, Plant and Equipment, Net | 307,612 | 296,605 |
Total assets | 1,305,151 | 1,284,630 |
Total current liabilities | 403,246 | 446,161 |
Total liabilities | 854,191 | 901,492 |
Accounts payable | 231,884 | 263,376 |
Variable Interest Entity, Not Primary Beneficiary [Member] | ||
Variable Interest Entity [Line Items] | ||
Total assets | 7,111 | 6,827 |
Investments | 7,111 | 6,827 |
Accounts payable | 4,851 | 3,936 |
Maximum exposure to loss | 11,962 | 10,763 |
Variable Interest Entity, Primary Beneficiary [Member] | ||
Variable Interest Entity [Line Items] | ||
Cash and Cash Equivalents, at Carrying Value | 1,224 | 1,729 |
Inventories | 3,460 | 2,581 |
Other Assets, Current | 3,387 | 4,179 |
Property, Plant and Equipment, Net | 4,540 | 4,657 |
Other Assets, Noncurrent | 396 | 465 |
Total assets | 13,007 | 13,611 |
Total current liabilities | 2,090 | 2,077 |
Liabilities, Noncurrent | 933 | 1,062 |
Total liabilities | $ 3,023 | $ 3,139 |
ROYALTY EXPENSE (Details)
ROYALTY EXPENSE (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Other Income and Expenses [Abstract] | ||||
Royalty expense | $ 1,921 | $ 3,045 | $ 4,856 | $ 5,919 |
OTHER INCOME (Details)
OTHER INCOME (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Aug. 31, 2014 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Other Income and Expenses [Abstract] | |||||
Interest Income, Securities, Operating, Tax Exempt | $ 475 | $ 475 | |||
Deferred Income Taxes and Tax Credits | $ 22,450 | 3,096 | $ 22,450 | ||
Gain (Loss) on Disposition of Business | 0 | 0 | 0 | (10,890) | |
Other Nonrecurring Income | 0 | 0 | 0 | 1,324 | |
Income (Loss) from Equity Method Investments | 277 | 322 | 732 | 570 | |
Gain (Loss) on Disposition of Assets | 61 | 72 | 71 | 182 | |
Other Nonoperating Income | 373 | 850 | 670 | 1,199 | |
Other Nonoperating Income (Expense), Total | $ 1,186 | $ 23,694 | $ 1,948 | 14,835 | |
Government Assistance, Amount | $ 17,000 | 1,900 | |||
Nonoperating Income (Expense) | $ 1,300 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | ||||
Provision for income taxes | $ 9,429 | $ 19,001 | $ 23,645 | $ 27,682 |
Effective Income Tax Rate, Continuing Operations | 22.80% | 21.60% | 26.60% | 22.80% |
Income taxes paid, net of refunds received | $ 12,684 | $ 8,813 | ||
Deferred Income Taxes and Tax Credits | $ 22,450 | 3,096 | 22,450 | |
Taxes, Other | $ 7,800 | |||
Tax Adjustments, Settlements, and Unusual Provisions | 2,600 | |||
Interest Income, Securities, Operating, Tax Exempt | $ 475 | $ 475 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Net income attributable to Titan and applicable to common shareholders | $ 30,207 | $ 67,171 | $ 62,045 | $ 91,093 |
Weighted Average Number of Shares Outstanding, Basic | 62,931 | 62,671 | 62,918 | 63,262 |
Effect of restricted stock and stock options | 303 | 550 | 486 | 511 |
Weighted average shares outstanding (diluted) | 63,234 | 63,221 | 63,404 | 63,773 |
Earnings Per Share, Basic | $ 0.48 | $ 1.07 | $ 0.99 | $ 1.44 |
Diluted | $ 0.48 | $ 1.06 | $ 0.98 | $ 1.43 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Segment Reporting Information [Line Items] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 481,176 | $ 572,895 | $ 1,029,820 | $ 1,128,892 | |
Gross profit (loss) | 85,895 | 109,653 | 181,452 | 196,382 | |
Income (loss) from operations | 45,898 | 69,701 | 101,034 | 114,409 | |
Interest expense | (5,762) | (7,707) | (12,254) | (15,614) | |
Foreign Currency Transaction Gain (Loss), before Tax | 2 | 2,234 | (1,758) | 7,551 | |
Other Nonoperating Income (Expense) | 1,186 | 23,694 | 1,948 | 14,835 | |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | 41,324 | 87,922 | 88,970 | 121,181 | |
Assets | 1,305,151 | 1,305,151 | $ 1,284,630 | ||
Operating Segments [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 481,176 | 572,895 | 1,029,820 | 1,128,892 | |
Gross profit (loss) | 85,895 | 109,653 | 181,452 | 196,382 | |
Income (loss) from operations | 45,898 | 69,701 | 101,034 | 114,409 | |
Operating Segments [Member] | Agricultural [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 269,148 | 318,585 | 575,006 | 628,184 | |
Gross profit (loss) | 48,736 | 61,921 | 97,986 | 109,845 | |
Income (loss) from operations | 32,119 | 44,884 | 64,688 | 75,001 | |
Assets | 576,182 | 576,182 | 548,523 | ||
Operating Segments [Member] | Earthmoving/construction [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 174,683 | 210,370 | 373,607 | 411,629 | |
Gross profit (loss) | 29,102 | 36,317 | 66,326 | 67,692 | |
Income (loss) from operations | 14,522 | 22,276 | 38,060 | 38,116 | |
Assets | 524,640 | 524,640 | 538,064 | ||
Operating Segments [Member] | Consumer [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 37,345 | 43,940 | 81,207 | 89,079 | |
Gross profit (loss) | 8,057 | 11,415 | 17,140 | 18,845 | |
Income (loss) from operations | 5,865 | 9,238 | 12,657 | 14,120 | |
Assets | 136,811 | 136,811 | 133,213 | ||
Operating Segments [Member] | Corporate & Unallocated | |||||
Segment Reporting Information [Line Items] | |||||
Income (loss) from operations | (6,608) | $ (6,697) | (14,371) | $ (12,828) | |
Assets | $ 67,518 | $ 67,518 | $ 64,830 |
SEGMENT INFORMATION ASSETS (Det
SEGMENT INFORMATION ASSETS (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Segment Reporting Information [Line Items] | ||
Assets | $ 1,305,151 | $ 1,284,630 |
Operating Segments [Member] | Agricultural [Member] | ||
Segment Reporting Information [Line Items] | ||
Assets | 576,182 | 548,523 |
Operating Segments [Member] | Earthmoving/construction [Member] | ||
Segment Reporting Information [Line Items] | ||
Assets | 524,640 | 538,064 |
Operating Segments [Member] | Consumer [Member] | ||
Segment Reporting Information [Line Items] | ||
Assets | 136,811 | 133,213 |
Operating Segments [Member] | Corporate & Unallocated | ||
Segment Reporting Information [Line Items] | ||
Assets | $ 67,518 | $ 64,830 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Related Party Transaction [Line Items] | |||||
Related Party Transaction, Revenues from Transactions with Related Party | $ 1,000 | $ 1,000 | $ 2,400 | $ 2,300 | |
Related Party Transaction, Purchases from Related Party | 0 | 300 | 200 | 500 | |
Related Party Transaction, Due from (to) Related Party | 500 | 500 | $ 200 | ||
Related Party Transaction, Expenses from Transactions with Related Party | 100 | $ 400 | 300 | $ 900 | |
Accounts Receivable, after Allowance for Credit Loss, Current | $ 280,688 | $ 280,688 | $ 266,758 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | |
Stockholders' Equity Note [Abstract] | ||||||||
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax | $ (233,461) | $ (236,367) | $ (233,461) | $ (236,367) | $ (235,673) | $ (243,712) | $ (217,602) | $ (236,059) |
Currency translation adjustments | 2,212 | (18,765) | 10,251 | (308) | ||||
AOCI, Derivative Qualifying as Hedge, Excluded Component, after Tax | 1,074 | 539 | 1,074 | 539 | 1,113 | 1,224 | 264 | (39) |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification and Tax | (39) | 275 | (150) | 578 | ||||
Other Comprehensive Income (Loss), Derivative, Excluded Component, Increase (Decrease), after Adjustments, before Tax, Parent | (39) | 275 | (150) | 578 | ||||
Accumulated Other Comprehensive (Income) Loss, Defined Benefit Plan, after Tax | (9,174) | 9,407 | (9,174) | 9,407 | 9,297 | 9,267 | 9,838 | 10,382 |
Amortization of unrecognized losses and prior service cost, net of tax | (123) | (431) | (93) | (975) | ||||
Accumulated other comprehensive loss | (241,561) | (245,235) | (241,561) | (245,235) | $ (243,857) | $ (251,755) | $ (227,176) | $ (246,480) |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, Tax | $ (41) | $ (162) | $ (30) | $ (344) |